Solution-What is the estimated total future costs

What is the estimated total future costs

Reference no: EM133061415

1. The American Opportunity Credit is characterized by all of the following EXCEPT:

A. It can be claimed only for the first four years of a post-secondary educationB. There is no requirement that the student pursue a degree
C. The maximum annual credit amount is $2,500 per student in 2015D. The credit is phased out between income ranges of $80,000 to $90,000 (single) and between $160,000 to $180,000 (joint) in 2019

2. Kelly wants to plan for her daughter's education. Her daughter, Rachel is 5 years old today will go to college at age 18 for 4 years. Current tuition cost is $20,000 per year. She has saved $7,000 for this goal. Kelly anticipates inflation rate for tuition is 8% and believes she can earn an 11% return on her investments. Show your work.

What is the estimated total future costs (tuitions for 4 years) at the time the child enters college?
What is the current funding shortfall?
How much must Kelly save at the end of each month if she starts to save today?

Reference no: EM133061415

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What is the estimated total future costs

Reference no: EM133061415

Reference no: EM133061415

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